For small businesses formed as an S Corporation and with plenty of profits, reasonable compensation is a term you may want to be familiar with. Many small businesses have organized as an S Corporation form of entity. In many cases, the S Corp election allows a business owner to save money on self-employment taxes, especially […]
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Summertime Tips on Child Care Expenses
Many parents who work or are looking for work must arrange for care of their children under 13 years of age during the school vacation. Here are five facts to know about tax credits available for child care expenses. The Child and Dependent Care Credit is available for expenses incurred during the lazy hazy days […]
Read more...IRS Warns of Latest Scam Variation Involving Bogus “Federal Student Tax”
Even though the tax deadline has come and gone, scammers continue to use varied strategies to trick people, in this case students. In this newest twist, they try to convince people to wire money immediately to the scammer. If the victim does not fall quickly enough for this fake “federal student tax”, the scammer threatens […]
Read more...Benefits for Military Personnel
Combat pay is partly or fully tax-free. Reservists whose reserve-related duties take them more than 100 miles from home can deduct their unreimbursed travel expenses on Form 2106 or Form 2106-EZ, even if they don’t itemize their deductions. Eligible unreimbursed moving expenses are deductible on Form 3903. Low-and moderate-income service members often qualify for such […]
Read more...Tax Information for Students Who Take a Summer Job
Many students take a job in the summer after school lets out. If it’s your first job it gives you a chance to learn about the working world. That includes taxes we pay to support the place where we live, our state and our nation. Here are eight things that students who take a summer […]
Read more...May 16 Is Filing Deadline for Many Tax-Exempt Organizations
With the May 16 filing deadline facing many tax-exempt organizations, the IRS cautioned these groups not to include Social Security numbers (SSNs) or other unneeded personal information on their Forms 990, and consider taking advantage of the speed and convenience of electronic filing. Form 990-series information returns and notices are due on the 15th day […]
Read more...How Long Do You Need to Keep Your Tax Records?
Why keep records? There are many reasons to keep records. In addition to tax purposes, you may need to keep records for insurance purposes or for getting a loan. Good records will help you: Identify sources of income. You may receive money or property from a variety of sources. Your records can identify the sources […]
Read more...IRA Contribution FAQ’s
The contribution limit for 2016 is $5,500, or $6,500 if you’re age 50 or older. Your Roth IRA contributions may also be limited based on your filing status and income. See IRA Contribution Limits. Is my IRA contribution deductible on my tax return? If neither you nor your spouse is covered by a retirement plan […]
Read more...Tax Design Challenge to Begin: Public Invited to Imagine the Taxpayer Experience of the Future
The effort, being done in coordination with the Mortgage Bankers Association (MBA), is a crowdsourcing competition open to the public. The competition will engage teams of designers, developers, and innovative thinkers across the U.S. to envision options for taxpayer interactions. “Crowdsourcing is a new activity for the IRS, but we believe working with citizens and […]
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